An arbitration tribunal in Britain has denied a Home Office claim for damages and a return of money from Raytheon in a dispute resulting from a contract termination.

Raytheon in the United States also reported that the tribunal found that the Home Office had unlawfully terminated Raytheon U.K.'s contract for border security program and must pay it $309 million in damages and other relief.

The dispute revolved around a program called e-borders, for which Raytheon's British subsidiary was to build an electronic system for immigration authorities to check travelers leaving and entering the country through the checking of their details against police, security and immigration watch lists.

The Home Office said Raytheon U.K. -- also known as Raytheon Systems Limited -- which won the contract in 2007, had defaulted by falling a year behind on its obligations, resulting in the contract termination.

"The tribunal denied all Home Office claims for damages and claw-back of previous payments," Raytheon announced. "It also found that the Home Office had wrongfully retained the 50 million pounds ($83 million) it had drawn on RSL letters of credit in April 2011.

"The tribunal reserved ruling on costs and on the quantification of interest payable to RSL."